ABC Tuition Services Pty Ltd Provides Private Paid Tuition Services

ABC Tuition Services Pty Ltd provides private paid tuition services to secondary school students. The company offers a discount to encourage prepayment and students always pay for their tuition in advance. The tuition contracts expressly provide that no refunds are available in respect of the prepaid tuition services. When monies are received from students, ABC's bookkeeper debits the 'cash at bank' account and credits the 'unearned income' current liability account as per generally accepted accounting principles. How should ABC Tuition Services Pty Ltd treat these monies received in advance for tax purposes?

A) The monies received in advance would be treated as assessable income when earned (and so only when the tuition services are provided)
B) The monies received in advance would be treated the same for tax purposes as they would be for accounting purposes and so would only give rise to assessable income when the services are actually preformed
C) The monies received in advance would be treated as assessable income when received
D) The monies received in advance are treated as exempt income and so not assessable at anytime

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